monopoly
muh-NOP-uh-lee
/məˈnɑː.pəl.i/
The exclusive possession or control of the supply of or trade in a commodity or service.
Implies total market control allowing a firm to set prices without competitive checks.
The story behind the word. From Greek monopolion, combining monos (single) and polein (to sell). Kings in antiquity granted exclusive trading charters to loyal subjects, giving rise to legal monopolies.
Word relationships
- cartel: A cartel is a group of independent companies colluding together, whereas a monopoly is a single dominant entity.
- perfect competition: Perfect competition features many small sellers with no single buyer or seller controlling prices.
Commonly confused with
- oligopoly: An oligopoly is market dominance by a small group of firms; a monopoly is control by exactly one.
Word family
- monopolize (verb): To obtain exclusive control of.
- monopolistic (adjective): Having characteristics of a monopoly.
Collocations
- state monopoly
- virtual monopoly
- break up a monopoly
Example sentences
- "The court ordered the breaking up of the oil trust after declaring it an illegal monopoly." Antitrust Law
- "Without government regulation, a natural monopoly can charge exorbitant rates for electricity." Market Structure
Memory hook
MONO-poly: MONO means ONE seller controlling the whole market board. One seller rules the market.
When not to use
Do not use for companies that are merely market leaders with 30-40% share; that is an oligopoly or dominant firm.
Fun facts
- The board game Monopoly was originally designed in 1903 by Elizabeth Magie to demonstrate the financial dangers of land monopolies.
Related words
Explore more words
monopolize, exclusivity, patent, dominate, antitrust, proprietary
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